Do You Know About the Transfer Tax in Quebec?
Planiprêt
Feb 03, 2025
The transfer tax, also known as the "welcome tax" or "real estate transfer tax," is a tax collected by municipalities when a property is transferred. This tax is payable by the purchaser of the property and is calculated based on the highest of the following amounts:
Transfer Tax Rates
- The amount of payment provided for the transfer of the property (the actual price paid, excluding GST and QST).
- The amount of payment stipulated for the transfer of the property (generally, the amount listed in the deed of sale).
- The market value of the property at the time of its transfer, which is the value listed on the municipal property assessment roll multiplied by the comparative factor determined for the current year.
For the year 2025, the applicable rates are as follows:
- 0.5% on the portion of the base amount that does not exceed $61,500.
- 1.0% on the portion of the base amount exceeding $61,500 but not exceeding $307,800.
- 1.5% on the portion of the base amount exceeding $307,800 but not exceeding $500,000.
- 2.5% on the portion of the base amount exceeding $500,000 but not exceeding $750,000.
- 3.0% on the portion of the base amount exceeding $750,000.
Municipal Freedom to Set Rates
It is important to note that municipalities in Quebec have the freedom to adjust the transfer tax rates beyond the base rates set by provincial law. This means that some cities may impose higher rates to meet their specific financial needs.
Since 2018, several municipalities have chosen to increase the maximum rates applicable to real estate transfer taxes. For example, some cities have doubled the maximum rate for the highest portions of the base amount. This flexibility allows municipalities to generate additional revenue to fund various local projects and services.
Here is a website that allows you to calculate the transfer tax according to the city: Transfer Tax Calculator.
Payment of the Transfer Tax
The transfer tax can be paid in three equal installments, without interest, according to the following terms:
- First installment: 30 days following the transmission of the bill by the municipality.
- Second installment: 90 days following the transmission of the bill by the municipality.
- Third installment: 150 days following the transmission of the bill by the municipality.
If the bill amount is $300 or less, it must be paid in full no later than 30 days following the transmission of the bill by the municipality.
Exemptions
Certain situations may lead to an exemption from the transfer tax, such as transfers between spouses, transfers to a corporation where the purchaser is the majority shareholder, and other specific cases provided by law.
Feel free to contact us so we can help you determine all the fees related to your future purchase.
Welcome tax calculation 2025
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